Television

Guest Column: What keeps broadcasters from cracking factual entertainment

MUMBAI: Worldwide, the business of broadcast is typically categorized into three verticals: the entertainment piece (GECs, English, Hindi, Regional, Music and other entertainment), the News & Sports piece (mostly events driven and current affairs driven) and the Factual Entertainment piece.   

Factual entertainment refers to ‘lifestyle’ entertainment and ‘Information & Knowledge’ category. Worldwide it is monopolized by the four majors: Discovery, History, National Geographic and Scripps.

The business of factual entertainment worldwide commands 11.5% of the audience share while contributing nearly 20% of the advertising sales revenue pie.  This business is seen to be an attractive segment therefore. No major TV broadcaster from India or the Eastern part of the world has yet cracked it. Why?

In India, the ratios for both the above parameters is approximately 1.5% and 2% respectively.  In terms of audience numbers, even as it is bigger than most of the English News Channels and other English entertainment, the ad revenue contribution remains highly under-performed.

The way to crack this business requires one to reimagine the business of factual entertainment aben issue.

Business Insights

Two insights are important for this business to be understood:

1.    Brand –Unlike GECs where individual programs pull their own weight, in the business of factual entertainment, the Channel is the brand. Channel = Brand. The shows are incidental. The audience is loyal to the channel and not necessarily to an individual program. The genre provides high engagement value and the audience profile can be decoded from channel personality and hence the advertising brand fits. The brand is expected to deliver certain standards and hence no daily valuations and audience ratings do not matter much.

2.    Imagery – Not only are the content costs high but the marketing investments are also higher as imagery – leading to perception - is everything. You do not have viewers in this category…you need to create fans.

Reimagining the Business Model

The business model needs to be looked at absolutely differently as compared to other segments. The revenue streams need to come from five different sources:

1.    Pre-Sales

2.    Co-Production

3.    Broadcast

4.    Formats, and

5.    Syndication

public://Untitled-3_16.jpg

In this model, while individual contribution shares may vary, broadcast is seen to contribute no more than 25-30%. The shelf life of content is far longer and investments in quality content need to pay off through several channels as above. Example - Co-production can help set-off high initial content costs. No wonder then that Discovery’s annual content budgets are in excess of a few billion dollars.

The broadcast players therefore need to decide to invest in Brand and Content as above. Most of all they will need to understand that this business has a long gestation period as getting the three unique factors – Audience communities as Fans, impeccable Brand integrity and cutting-edge Content – right makes the business thrive. Over and above this, the business model needs to follow the Five-Point Strategic approach rather than being looked at as a pure-play broadcast business.

public://Untitled-4_3.jpg

(Piyush Sharma, a global tech, media and entrepreneurial leader, created the successful foray of Zee Entertainment in India and globally under the ‘Living’ brand. The views expressed here are of the writer’s and Indiantelevision.com may not subscribe to them.)

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/20/Chrome_800.jpg?itok=sw2uHBAc
Kids genre becomes top gainer in Chrome DM week 46

Kids genre has become the top gainer in week 46 of Chrome Data Analytics and Media data. The genre grew by 5.02 per cent. In this genre, Discovery Kids channel gained the highest OTS with 89.9 per cent in all India 1lakh+ market.

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/zeel.jpg?itok=NPI2s0YG
ZEE and Helo App crafts in partnership

MUMBAI: Delivering on its promise of meeting brand objectives by  providing solutions with exceptional incremental value to its clients through a platform agnostic approach, the Content & Partnerships vertical of Zee Entertainment Enterprises  Ltd (ZEEL) has taken brand solutions to newer...

Television TV Channels GECs
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/eros.jpg?itok=jtFJVsw5
Eros Now announces collaboration with YouTube Music

MUMBAI: Eros Now, a premier South Asian OTT entertainment platform with more than 177 million registered users, today announced a collaboration with YouTube Music in India to introduce a special subscription package at INR 99 for 90 days for new users of YouTube Music Premium subscription. The...

Television TV Channels Music and Youth
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/tv18.jpg?itok=5dv8ymSB
FYI TV18 reveals the secrets and stories behind the ‘Recipes That Made Me’

MUMBAI: FYI TV18 presents a series dedicated to the legacy of food and the power it holds in all our lives. ‘Recipes That Made Me’ has UK-based Chef and Restauranteur Nisha Katona travelling around the UK, meeting diaspora from India, Bangladesh, Pakistan and Sri Lanka. She meets passionate home...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/netwrok18.jpg?itok=5r_a2mte
Network18 announces senior elevations in News18.com

MUMBAI: The general news vertical has been one of the strongest parts of the Network18 portfolio over the past year. In its best efforts to leverage the opportunities the scale affords, Network18 has announced key elevations in the leadership team of News18.com, its breaking news platform. Azim...

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/Joy-Chakraborthy.jpg?itok=9ifoDVor
Bhojpuri market is a priority for all FMCG brands: Enterr10's Joy Chakraborthy

Bhojpuri content has been giving a tough time to its Hindi counterparts if one goes by weekly Broadcast Audience Research Council of India (BARC) data. In week 45, as in several others, the channel was leading with 63910 weekly impressions (000s).

Television TV Channels Regional
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/NOVA-Cinemaz.jpg?itok=Cul8MhDQ
"OTT, TV and cinema complement each other": UFO Moviez' CEO Rajesh Mishra

The movie-exhibition business in India is stuck in contradictions. On the one hand, the country produces the highest number of movies in the world, on the other, its screen-density remains one of the lowest. Various state governments provide subsidies to promote shooting in their states, yet GST...

Television TV Channels Movie Channels
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/19/Star-Jalsha.jpg?itok=G_F3-aZu
Star Jalsha launches Start Music-new music game show

Star Jalsha is all set to premiere its new music game show- Start Music on weekend from 24th November onwards every Sunday. The 18-episode series is produced by Double Half Productions who have successfully partnered Star Jalsha in producing Mahalaya and other shows.

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/11/18/disney.jpg?itok=N9YL6kBF
Disney's Frozen 2 collaborates with 67 brands

MUMBAI: Disney’s Frozen 2, the sequel to one of the highest-grossing animated films of all time, is around the corner and the excitement amongst fans and brands is big. Disney’s consumer products business in India has collaborated with 67 brands across categories to bring alive the magic of...

Television TV Channels Kids

Sign up for our Newsletter

subscribe for latest stories